Even though vacancy rates are growing bigger each day, which is the first time this has happened in eight years, the price of rent is still climbing steadily, which is good news for all those landlords, wannabe landlords and real estate owners out there. But just because times are good now, doesn’t mean they always will, nor does it mean owning a property and renting it out is going to let your retire later this year. That is because turning a profit as a landlord is no easy feat. It is not impossible, but it is not easy either.
That is why we have pulled together a list of strategies that will help you maximise the revenue you get from your rented properties. Enjoy.
Up The Rates, But Not Too Much
This is a balancing act that can take time – or assistance – to fully wrap your head around. Price your property too low and you will fill it quickly and see it occupied all year round. However, you could be missing out a lot of income each year, like thousands of dollars of income. That is why you really need to make sure you’ve got your cost vs revenue calculations spot on. Knowing what variables command a premium can help you on this front, which is where location, modernized decor, the condition of the property and the amount of bedrooms can all command a higher price. Just make sure you are still competitive.
Be Smart About Your Approach
A lot of landlords opt to work harder than smarter, which means they are missing out on all sorts of money saving tips and tricks. A lot of the time, landlords are scared to use an agent to run their properties for fear of costs, but by getting property management quotes you could find it far more worth your while. Just like shopping around for car insurance, this could save you money and hassle. If you are set on going it solo, then investing in end-to-end rental management software, like Cozy, could simplify your role an immeasurable amount. Less time collecting money, less time screening potential tenants, and just a better overall experience.
No What Tax Breaks Are Available To You
The more allowable expenses that you make a note of the less profit you will have to tax and that means a lower tax bill. As such, knowing what falls within the ‘allowable’ bell curve is your key to maximising your revenue. For example, both maintenance and repair costs can be claimed, which is great news as these costs could be spent keeping your properties in tip top condition, even upgrading them, which are amends that could see you raise your rent too. Talk about a win-win situation. Other tax breaks you can start enjoying include things like mortgage interest payments and any costs that were incurred when you bought the property. Just make sure you know how the annual depreciation clause works so that you aren’t caught out trying to put all of these deductions through in one year.